Newsletter 9-13-17

Notice – NEW IUL Co.

About 4 months ago I became aware that a co. was designing their initial IUL.  This came about as their product designer is an IULDigest member and let me know that he was using a lot of the report information on the site to assist them in designing the features of it.

They are in the final stages of getting their system ready and it will be released the 2nd week of Oct., but I will be able to announce who it is and the policy features Oct. 2nd.  I have already been provided in advance with illustrations to do a comparison analysis and it will be among the top rated IUL’s.  More in a couple of weeks.



Allianz Crediting / Monthly Gains

The way they credit gains is different from every other co.  You need to be aware of how they do it.  First, with this year’s Life Pro they have modified (better) how their requirement that all premium that is more than paid the year before must go into the fixed account for the year works.  If you sell or compete against them you must know how this feature works.

Second, ALL gains (monthly, quarterly, semi) are based on the policy date.  So if that is Jan., the premium paid in Dec. earns the SAME gain for that year.  If the annual gain from Jan.-Jan. is 12%, each mo. earns 1%.  If you think you are cost averaging with premiums other than annual, you are NOT!  This method can be a positive or a negative – just be aware that it works this way (they say the reason for doing it this way is that there can be more  annual gains posted into the IUL sooner).

So does it make a difference which month you invest?  Turns out historically it does.

Based on a 14% (avg. lifetime) cap for all years, the avg. annual 20 year gain spread between the best and worst month of the year:

1997-2016:  8.7% vs. 10.04%

1977-2016:  9.16% vs. 9.81%

1950-2016:  8.67% vs. 9.75%

With all other co.’s if you want to adjust to have client’s pay annual premiums based on this after it is begun, you can.  With Allianz the only way to do so is defer starting any policies until the “best” month(s).



  • Axa Added VLR with an 8% cap.


  • IUL 2nd Quarter Sales

“Indexed life second quarter sales were $485.0 million; a figure that was up more than 11.2% when compared with the prior quarter, and up nearly 10.0% as compared to the same period last year. “Indexed life sales are on track to set another sales record in 2017” (according to) Wink, Inc.

Pacific Life Companies gained the #1 ranking in indexed life sales, with a 12.8% market share. Transamerica, National Life Group, Minnesota Life-Securian, and Zurich (sales estimated), tallied up the top five sellers.

Transamerica Premier Financial Foundation IUL was the #1 selling indexed life insurance product, for all channels combined, for the fourteenth consecutive quarter. The average indexed life target premium reported for the quarter was $8,071; a decline of nearly 9.0% from the prior quarter.

Fixed UL 2nd quarter sales were $496.9 million. The average UL target premium was $7,844.

Whole life 2nd quarter sales were $1.0 billion. The average annual premium per policy was $3,660.”



Good news: Employees are starting to get serious about saving for retirement

According to a Fidelity analysis of its retirement accounts, showing the average 401(k) balance was $97,700 and the average IRA balance was $100,200. Retirement savers with accounts from 10 years ago saw a record average of $266,100, up from $78,800 in the second quarter of 2007.


Should you let a ‘robot’ manage your retirement savings?

Robo-advice is certainly growing in popularity.

Market research aggregator Statista says the US market will grow 29% per year between now and 2021 … Consultancy AT Kearney forecasts that robo-advisers will be managing $2.2tn within five years, representing a 68% annual growth rate.

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